Stock in circulation

As WIP , and work in process (tight. Work in process) is in the business administration the amount of holdings referred to, which is bound by shared contracts in the various stages of the current production. This includes materials in progress as well as those in queues or buffers. As a takeover of the English term “work in process”, the term “goods in work” is also increasingly establishing itself in German.

An essential task of production planning and control (PPS) is to keep circulating stocks as low as possible. They tie up liquidity, capital and space, often cause additional transport and, if they are not being processed immediately, are generally considered waste ( Muda ). Due to the relationship between inventory and lead time ( Little's law ), inventory also restricts flexibility.

The counterpart to circulating stocks is current assets .